Guide · Screening data from August 6, 2026
Halal stock screener: how to check if a stock is halal
A halal stock screener checks what a company does and how it is financed. Penny's AAOIFI-style screen excludes impermissible industries, then requires debt and cash plus interest-bearing securities each under 33% of market cap, receivables under 49% of assets, and non-permissible income under 5% of revenue when reported.
How does a halal stock screener work?
- Business activity. Companies whose core business is impermissible are excluded outright — conventional banking and insurance, alcohol, tobacco, gambling, adult content, defense and pork production.
- Financial ratios. The rest are measured against limits: interest-bearing debt ÷ market cap < 33%, cash + interest-bearing securities ÷ market cap < 33%, accounts receivable ÷ total assets < 49%, and non-permissible income ÷ revenue < 5% when separately reported.
- Verdict. Penny gives three results, not two: passes (with a 1–5 grade for how far it sits from each limit), needs review (a genuine gray area or thin data), and not halal (a blocked industry or a failed ratio).
Every rule, data source and limitation is documented in Penny's screening methodology.
Why do halal screeners disagree?
Different screens use different denominators — some divide debt by market capitalization, others by total assets — so a stock can pass one and fail another. Data dates differ, and gray-area industries are handled differently. The SPUS vs HLAL comparison shows the market-cap versus total-assets difference on two real funds. When a stock sits near a limit, check more than one source and look at the snapshot date.
Check a stock now
Penny's website screens 49 major US stocks (data from August 6, 2026): 37 pass, 4 need review and 8 fail. Each page shows the rule-by-rule numbers.
Pass Penny's screen
Fail screening
What a screen does not tell you
- Interest income isn't separately reported in Penny's current website dataset, so that check is shown as not measured — not as a pass.
- Passing stocks can still carry a small share of impermissible income that needs purification.
- Results change with each filing and price move — use Compliance Watch or the app to re-check.
- Penny's methodology has not been certified by a sharia board. It's a transparent educational screen, not a fatwa.
Free tools to go further
Screen your whole portfolio in the Penny app
Penny: Halal Portfolio Tracker screens supported stocks live, shows which rule a holding fails and the number behind it, and adds zakat and purification. No bank login.
Download Penny for iOSFrequently asked questions
What does a halal stock screener check?
Two layers. First the business: companies whose core activity is impermissible (conventional banking and insurance, alcohol, tobacco, gambling, adult content, pork production, defense) are excluded. Then the finances: interest-bearing debt and cash plus interest-bearing securities must each stay under 33% of market capitalization, receivables under 49% of total assets, and non-permissible income under 5% of revenue when it is reported.
Why do halal screeners disagree about the same stock?
Methodologies differ. Some divide debt by market capitalization, others by total assets, so the same company can pass one screen and fail another. Data dates also differ — a screen from before a new filing or a big price move can be out of date. Gray-area industries such as media, hotels, airlines and advertising are treated differently too.
Is a stock that passes the screen automatically halal?
No screen is a fatwa. A pass means the company met the measured rules on the data date. Incidental interest income may still need purification, and some data points — such as interest income in Penny's current website dataset — are not measured. For a binding ruling on your situation, consult your scholar.
How often should I re-check a stock?
Whenever the company files new results or its share price moves a lot, because both change the ratios. Each Penny stock page shows its snapshot date, and the Penny app screens supported stocks live.
What is dividend purification?
Giving away the share of a dividend that comes from impermissible income. When the interest share is not known, Penny's purification estimate uses a conservative 5% default. The free dividend purification calculator works it out for you.
Educational content based on Penny's published methodology and screening data from August 6, 2026 — not a fatwa, certification or investment advice. Scholarly positions and screening methods differ; consult your scholar.